Role of Human Resources in Economic development, which of the following statement/s is/are correct? 1. Effects of economic development on population growth. 2. Effects of population growth in economic development. Select the correct answer using the code given below –
- (a)Only 1
- (b)Only 2
- (c)Neither 1 nor 2
- (d)Both 1 and 2
Correct — D, Both 1 and 2. The relationship between population (human resources) and economic development runs in both directions, and the study of this topic covers both. (1) Economic development shapes population growth: rising incomes, urbanisation, better healthcare and female education drive the demographic transition — death rates fall first, then birth rates, changing the growth rate. (2) Population growth shapes economic development: a growing working-age population can boost output as a 'demographic dividend', or, if it outstrips capital and jobs, can strain resources and per-capita income. Because both effects are genuine dimensions of the subject, both statements are correct.
- (a)Only 1 — The effect of economic development on population growth is real, but so is the reverse — how population growth affects development — so limiting the answer to 'Only 1' drops a valid half of the two-way relationship.
- (b)Only 2 — The effect of population growth on economic development is real, but the influence of economic development on population growth (the demographic transition) is equally part of the topic, so 'Only 2' is incomplete.
- (c)Neither 1 nor 2 — Both effects are well-established in development economics, so rejecting both is incorrect.
In development economics, human resources (population) and economic development have a two-way, mutually reinforcing relationship. Development influences population through the demographic transition — as economies grow, mortality and then fertility decline. Conversely, population influences development through the size and quality of the labour force: a large working-age share can accelerate growth (the demographic dividend) if it is educated, healthy and employed, but can burden the economy if it is not.
The statements are phrased as the two 'directions' economists study, and both are legitimate. The trap is to treat them as rival claims and pick 'Only 1' or 'Only 2', when in fact the topic 'role of human resources in economic development' explicitly encompasses causation running both ways.
- Demographic transition: economic development typically lowers death rates first, then birth rates, altering population growth.
- Demographic dividend: a large 15-64 working-age population can raise growth if productively employed and skilled.
- Rapid population growth outpacing capital formation and jobs can depress per-capita income and strain resources.
- Human capital — health, education and skills — determines whether a growing population becomes an asset or a liability for development.
Both statements describe real halves of the same feedback loop — hence 'Both 1 and 2'.
- Reading the two statements as competing claims and choosing 'Only 1' or 'Only 2'
- Assuming population growth is always a drag on development, ignoring the demographic-dividend case
UPPSC/UPSC test the population-development link either as a conceptual 'both directions are correct' statement pair, or by asking what conditions turn a young population into a demographic dividend.
India is regarded as a country with "Demographic Dividend". This is due to
- (a) Its high population in the age group below 15 years
- (b) Its high population in the age group of 15-64 years
- (c) Its high population in the age group above 65 years
- (d) Its high total population
Answer(b) Its high population in the age group of 15-64 years
Directly tests Statement 2's idea — how the size/structure of the population (human resources) affects economic development.
Economic growth in country X will necessarily have to occur if
- (a) there is technical progress in the world economy
- (b) there is population growth in X
- (c) there is capital formation in X
- (d) the volume of trade grows in the world economy
Answer(c) there is capital formation in X
Probes the population-growth-vs-economic-growth link — showing population growth alone does not guarantee development, the nuance behind Statement 2.
- practice — not a real PYQ
India is described as having a 'demographic dividend' mainly because of
- (a)Its high population below 15 years of age
- (b)Its large share of population in the 15-64 working-age group
- (c)Its high population above 65 years of age
- (d)Its very high total population
Answer(b) A large working-age (15-64) population that can boost growth if productively employed.
- practice — not a real PYQ
According to the demographic transition, the usual sequence as an economy develops is
- (a)Birth rate falls first, then death rate
- (b)Death rate falls first, then birth rate
- (c)Both rise together
- (d)Both stay unchanged
Answer(b) Death rate falls first, then the birth rate — narrowing the gap and eventually slowing population growth.